NEWS RELEASE
TIMMINS AND DISTRICT HOSPITAL
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Many Ontario hospitals have been struggling with financial issues over the past few years as a result of the zero funding increases from the Ministry of Health and Long Term Care.
In spite of the funding freeze and the inflationary increases in wages, services and supplies, the Ministry of Health through its Local Health Integration Networks has insisted that hospitals must balance their budgets.
Unless mitigation measures are taken immediately, Timmins and District Hospital is facing large deficits in both the current year and the future.
“Faced with the above factors and the prospect of continuing to incur operating deficits over the coming years, the TADH Board commissioned an Operational Assessment by an independent third party in April of this year” said Leon Laforest Board Chair of the Timmins and District Hospital.
“Based on the findings and the recommendations of the Operational Assessment recently completed by KPMG-PSG, the TADH Board, Administration and Management have formulated a plan to implement the recommendations of the report which will lead to a balanced budget by the NELHIN imposed deadline of March 31, 2015 and for the next fiscal year.”
The plan is based on a number of changes including some reductions in staffing.
The guidelines that have been followed in reaching decisions include:
- Minimize the impact on program and services and protect core services
- Maintain quality and patient safety standards
- Focus on improving the “patient experience” with any changes to be made
- Reduce the direct impact on staff/medical staff where possible
- Ensure equitable treatment across the organization
In 2014/2015, TADH has an annual operating budget of approximately $95 million.
If the status quo were to be maintained, we are facing a forecasted deficit of $4.5 million by March 31, 2015 and a further $6.5 million by March 31, 2016.
Multiple revenue generating and cost reduction initiatives are being launched to eliminate these projected deficits.
These initiatives were developed after extensive consultations with and input from the board, senior management, stakeholders, professional and medical staff.
More detailed information regarding key initiatives will be shared later once all staff and key stakeholders have been individually advised on the impact these initiatives will have on them.
Since almost 70 percent of the hospital’s budget is made up of wages and benefits, the elimination of the deficit will have some repercussions on the hospital’s staff.
Forty positions (38.7 FTE’s) are being eliminated.
Direct communication with union representatives and staff regarding the affected positions began October 10.
“We anticipate that up to 10 positions will be eliminated by attrition and reduced hours, and as many as 12-15 by early retirements and voluntary exits. The number of layoffs will depend on how many people accept other options,” said Roger Walker, President & CEO, Timmins and District Hospital. “By following this process, we expect that the actual number of lay-offs will be relatively small.”
Monthly evaluations of progress in reaching the targeted outcomes will determine if any additional adjustments will be required.
“Balancing the hospital’s almost $100 million budget is a long standing challenge. Uncorrected, 2014 would be the second consecutive deficit year for the hospital. The hospital can no longer afford to incur deficits if it hopes to continue delivering the high level and quality of health services the residents of Timmins and the District of Cochrane deserve.” said Iain Martin, treasurer of the TADH Board of Directors. “Our main focus in the years ahead will be to maintain a balanced budget in the face of escalating costs and this continuing climate of financial constraints by the provincial government”.
Roger Walker added, “Our ability to provide necessary services and quality of care has been seriously compromised by recurring deficits. Bringing financial stability to the hospital will address these concerns and will allow TADH to better meet the health care needs of the people throughout the district and the city of Timmins. Our objective throughout this period of change will be to ensure the “patient experience” at TADH is improved”
“Over the years our hospital has taken on many services not available in the community or other settings, said TADH Chief of Medical Staff, Dr. Harry Voogjarv. “With legislated cost restraints we will no longer be able to act as the social safety net. This is a choice we have been forced to make. Changes being made at this time will return our primary focus to our 'acute care' mandate."
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